Features::About This Site/FAQ

About this site

What is the Philippine LGU Assistance Portal?

The Philippine LGU Assistance Portal (LGU Portal) is a one-stop-site for information on World Bank-supported products and services for local government units (LGUs) in the Philippines. This website provides information on Bank-supported projects for LGUs that are ongoing and in the pipeline, their geographic areas of coverage, the types of LGU projects or technical assistance that may be funded therein, including contact information on the staff of implementing agencies that manage the projects and of the Bank that supervise the projects.

Back to the top

What are the objectives of the LGU Portal?

The World Bank's assistance to the Philippines is governed by a Country Assistance Strategy (CAS) prepared in consultation with the government, business groups, academic institutions, and NGOs/civil society across the country. At the same time, the Philippine CAS supports the priorities identified in the country's Medium Term Development Plan.

The objective of the current CAS is to assist the Philippine Government in reestablishing a pattern of rapid and sustained poverty reduction.  This will require measures to increase economic growth and programs to improve access to basic services such as health, education, water, electricity, roads and other productive assets like land and credit that the poor need to improve their livelihoods.   To realize this, the Bank has adopted a strategy of developing a closer working relationship with the level of government nearest to the people-the LGUs.

The objective of the LGU Portal therefore, is to support the government's development thrusts by facilitating LGU access to World Bank-supported products and services.

Back to the top

What kind of information will I find on the Portal?

In the LGU Portal, users will find information on the following Bank-supported products and services offered to LGUs:

• Water supply, sanitation and drainage
• Roads, bridges, street lighting, transport terminals
• School buildings, health centers
• Solid waste management, traffic management
• Post-harvest facilities, small-scale irrigation; and
• Associated feasibility studies

These product lines are organized into themes/areas of interests that are each linked to specific projects. These are:

• Capacity Building
• Education
• Energy
• Environment
• Health and Nutrition
• Rural Development
• Transportation
• Urban Development
• Water Supply and Sanitation
• Other Products 

In each project page, visitors will find a brief description of the project objectives, components, terms and conditions, LGU eligibility requirements, and a list of names and contact information on the staff of implementing agencies that manage the projects and of the Bank that supervise the projects.

Back to the top

What are the novel features of the LGU Portal?

One-stop-site on current World Bank-supported products and services

The LGU Portal covers all the World Bank-supported products and services that are currently available to LGUs. It provides not only ready access to information on Bank-supported products and services, it also has a collection of knowledge resources, which include relevant websites and case studies for each sector. The information on the LGU Portal will be updated regularly so that LGUs will have up-to-date information on Bank-supported activities. Registered users will also receive e-mail newsletters on new products and other activities.

Online Helpdesk

LGUs can e-mail their questions, feedback and suggestions to the LGU Portal Helpdesk through the LGU Portal. The World Bank has assigned a staff member to respond to questions related to the Bank-supported products and services.

Online Application to Access Project Funds

A unique feature of the LGU Portal is that it allows LGUs to submit online a Letter of Intent to access project funds for their priority development needs. This function will allow all interested LGUs to start a dialogue with the implementing agencies immediately. In turn, the implementing agencies will advise LGUs on eligibility requirements, application process, description of the projects, and sub-project funding requirements.

Additional information in the Project Detail Page includes:
• Project terms and conditions
• Required documents that LGUs need to submit
• List of approved/ongoing projects and implementing LGUs

Frequently Asked Questions (FAQs)

The World Bank has prepared a list of the most frequently asked questions by LGUs who are interested in applying, or are in the process of applying for assistance under a World Bank-supported project. This page provides very useful information on packaging a project for funding, the application process and related activities, including a list of permits (e.g., Environmental Compliance Certificate) that need to be secured from various agencies before a project may be implemented.

Available in CD format

The LGU Portal is also available in CD-format so that even LGUs who do not have access to the Internet may have all the information they need on the World Bank-supported products and services. To get a copy of the CD, please contact the Helpdesk.

Back to the top

Frequently Asked Questions (FAQ)

How do I apply for a loan?

The World Bank has a range of projects that extend loans for a variety of local government unit (LGU) needs. Although each project has its own set of eligibility criteria and requirements for qualification, following is a general roadmap on how an LGU can apply for a World Bank loan:

A. Project identification

The first step to applying for a project loan is to identify the types of projects that need to be implemented. It can originate from the City's Comprehensive Land Use Plan (CLUP), Medium-Term Development Plan, or Annual Investment Plan. LGUs can seek assistance from regional offices of NEDA in identifying and prioritizing projects.

B. Project Packaging

After identifying the project, the LGU must package the project to determine the best way for financing it. Packaging a project will involve:

• Preparation of pre-feasibility and feasibility studies
• Deciding on the type of financing
• Preparing the documents required by lenders/investors

C. Project Matching

Once the projects have been identified and packaged into an investment portfolio, the LGU can review the Bank's active lending programs to determine under which ones their project may be financed. Some eligibility criteria include:

• Nature of project (e.g., water supply, roads, sanitation, capacity-building, institutional strengthening, environment, consultancy services, equipment, etc.)
• LGU income class
• Geographical location

For more information on the Bank's lending programs, an LGU can approach the different implementing agencies. These include: DoF, MDFO, DILG, DBP, LBP, DSWD, DepEd, DOH

D. Preparation of the Project Documents

Project requirements vary depending on the implementing agency and the nature of the project. In general, the following are required in addition to other documents:

• Project concept paper or detailed study
• Financial statements for the past five years
• Sanggunian/Development Council Resolution
• Letter of Intent/Interest signed by the Mayor
• Budget for the current year
• Certification as to the Outstanding Loan Obligations of the LGU stating the amount, interest, term, security/collateral, status, loan amortization among others
• Updated socio-economic profile
• Updated Revenue Code
• Collateral documents
• Schedule of internal revenue allotments (IRA) over the past three years

The implementing agency then conducts a thorough review of the project documents. If the application is deemed eligible, it will be endorsed to the Bank for approval.

Back to the top

Is there a grant component?

The World Bank's grant-making strategy is geared towards complementing its loan programs. As such, most projects include a grant component, usually in the form of technical assistance for project preparation, feasibility studies, or project implementation. For further information, LGUs can contact the respective implementing agencies.

What are the loan terms?

The loan terms vary per project and the LGU should verify the information with the concerned implementing agency. In general, loans from World Bank-assisted projects:

• Must not exceed the LGUs net borrowing capacity
• Interest rates at 14-15% p.a.
• Maximum loan repayment period of 15 years
• Grace period ranging from 1 to 3 years
• Loan payment schedules vary, depending on the cash flow of the project

Back to the top

Do we have to provide some form of equity?

To encourage ownership and commitment to the project, the Bank's lending programs require LGUs to provide some form of equity for the project, ranging from 10% to 30% of the loan amount, while the remaining portion will be financed by the loan.

In most cases, the LGU remits its equity in tranches, coinciding with the release of funds from the National government. The National government's share in the project, however, will not be released to the LGU without the submission of the required documents and a machine validated form from the LGU's bank showing that the agreed amount has been deposited into the project account.

Back to the top

How long is the implementation period?

Implementation periods vary per project, depending on the type of project to be implemented, the components included, the procurement process, and in general, the complexity of the entire project. Among the projects available for loan financing, infrastructure projects have the longest implementation periods-about 1-1/2 to 3 years-due primarily to the lengthy procedures involved in procurement of goods and services and in the preparation of detailed engineering plans. Following is an indicative time frame for an infrastructure project:

Back to the top

Who will implement the project?

The World Bank strongly believes that the long-term sustainability of a project hinges greatly on the LGU's ownership of and commitment to the project. As such, the Bank's assistance strategy focuses on building the capacities of the LGUs to implement and sustain the project gains by giving them the responsibility for project implementation. However, the project management offices (PMOs) of the implementing agency located in the LGU are on hand to assess the LGU's capacity to implement the project and to provide additional technical assistance, either through direct involvement or additional training. At the same time, the LGU can seek assistance from the regional/provincial offices of the implementing agency.

Back to the top

What is the schedule of fund releases?

Fund releases vary per project and are largely dictated by the availability of funds in the national coffers. Particularly for infrastructure projects where progress payments need to be forwarded to the contractors, the schedule of payments is crucial as this directly impacts the project implementation period. In general, however, the schedule of fund releases for infrastructure projects are as follows:

For fund releases, the LGU shall submit the required documents and completed forms to the Project Management Office (PMO), who in turn, will endorse the request to the Municipal Development Fund Office in the (MDF) in the Department of Finance. For as long as the documents are complete and properly filled out, and that funds are available, the funds may be released directly to the LGU within 2 weeks.

Back to the top

Does the Bank have specific guidelines to be followed for the procurement of goods and services?

Yes. The World Bank has established rules for the use of its loans and for supervising the execution of the projects it finances, including procurement of the necessary goods and works for them. The Bank has developed its procurement policies to a) ensure that the goods and services needed for the project are procured with due attention to economy and efficiency; b) to ensure that the loan is used to buy only those goods and services needed to carry out the project; c) to give all qualified bidders from the Bank's member countries equal opportunity to compete for Bank-finance contracts; d) to encourage development of local contractors and manufacturers in borrowing countries; and, d) to ensure that the procurement process is transparent. Goods, equipment and services can be procured through several procedures: international competitive bidding (ICB), national competitive bidding (NCB), limited international bidding, international shopping and local shopping. ICB and NCB are the most frequently used. Limited international bidding is applied only when the number of suppliers is limited. Because of the scale and scope of LGU projects, NCB is more commonly used for projects at the LGU level.

The Implementing Agency provides the LGU with the standard bidding documents needed for the project. The Borrower is responsible for ensuring that a Notice is published in local newspapers at least thirty days before the bid opening date. Local procedures for bid opening and evaluation are usually followed. Bids must be opened publicly at the specified time and date, and bidder's representatives should be invited to attend. The Bank task Manager should ensure that the bid opening formalities must be adhered to, and ensure that minutes of the bid opening, prepared by the Borrower, are sent to the Bank promptly.

Bids are evaluated by a committee comprising members of the Borrower's project implementation agency, the Department of Finance and other agencies as necessary. The committee forwards its recommendations to the Bank, together with supporting documents. After receiving the bid evaluation report, the task manager reviews it and consults with the Regional Procurement Advisor and other experts, if necessary. If everything is in order, the task manager prepares a "no objection" telex or fax for the Division Chief's signature, send copies of the signed correspondence to the disbursement officer, and completes the necessary forms.

The selection of consultants for services required under the project involves different procedures from those applied to goods and works. If the consulting services required are less than US$100,000 for consulting firms (or US$50,000 for individual consultants), the Bank reviews only the terms of reference and the short-list of consultants. For work above this amount, the Bank reviews the Borrower's proposed short-list, the Letter of Invitation, the terms of reference, drafts of contracts, and any other relevant information, and then makes a selection or recommendation.

For more information on the Bank's procurement guidelines, visit the website at http://worldbank.org/html/opr/procure/contents.html.

The Bank has also prepared standard documents for use by Borrowers and their implementing agencies in the procurement of works, goods and services.

The Borrower, and not the Bank, is responsible for procurement. The Bank's role is to ensure that the Borrower's work is done properly, that the agreed procurement procedures are followed, and that the entire process is conducted with efficiency, fairness, transparency and impartiality.

The World Bank is developing an external website that will be a "one-stop-shop" for information on the Bank's procurement guidelines.

The site can be viewed at http://www.worldbank.org/html/opr/procure/borrower.html

Back to the top

How do I apply for an Environmental Clearance Certificate for my project?

Sound environmental practices and protective measures are critical for sustainable development. The World Bank therefore has exacting requirements to help implement them. Prior to implementation therefore, a proposed project must first be reviewed based on its impacts on the environment. After complying with these requirements, an LGU may then proceed to apply for the necessary local permits.

All of the Bank's lending operations are classified into "environmental assessment categories," to determine the level of environmental assessment (EA) that needs to be done prior to project implementation. These are as follows:

Environmental Assessment Category A: Full EA is required
Environmental Assessment Category B: Environmental analysis required
Environmental Assessment Category C: No EA required

The concerned implementing agency shall assist the LGU in the preparation of the EA by providing the project-specific outline required. The recommendations from the EA provide the basis for monitoring and supervising the environmental aspects of the project during implementation. Upon completion of the EA report, the LGU may now proceed to project implementation.

Any project that will be built on the ground requires a number of permits from both the local government unit and the concerned National government agency. The types of permits needed are further governed by the location of the project, the use of the structure, the adjacent land uses, and if it is covered by a special law.

The Department of Environment and Natural Resources (DENR), through the Environmental Management Bureau (EMB), has assembled a collection of national policies and regulations that govern specific types of construction, special zones/areas, the process for applying for the necessary permits, and the forms that need to be submitted. These documents can be downloaded from the website: http://www.emb.gov.ph/download/downloadable_main_all.htm

For further information, please contact the EMB office at (02) 929-2241 or you may send e-mail inquiries to the concerned department. The link to their contact information is: http://www.emb.gov.ph/about_us/contact/org.htm

Back to the top

What do I do if the project involves resettlement issues?

While resettlement issues do not occur in every project, they must nevertheless be addressed for the project to receive Bank funding. In most cases, resettlement issues affect: a) indigenous peoples; b) involuntary resettlement; and c) projects in disputed waters or on international waterways. In the case of indigenous peoples, the Bank tries to identify their presence early in the project cycle and inform the Borrower of their responsibility to design Indigenous Peoples Development Plans. Such plans must be designed with the "informed participation" of the affected parties and that adequate attention is given to their rights to use and develop the lands they occupy, to be protected against illegal intruders, and to have access to natural resources for their subsistence and reproduction.

For projects that may encounter involuntary resettlement issues, the Borrower should ensure that a full resettlement plan in compliance with the Bank's policies has been submitted and reviewed by the Bank's East Asia Social and Environmental sector Unit Regional Technical Department. The plan should include full details, budgets and timetables for compensating and relocating the people that are displaced by the project. It should further demonstrate that resettlement has been minimized, that resettlers have participated in choosing the options in the plan, and that project authorities will assist resettlers in regaining or improving their prior incomes and standards of living.

Projects located in areas that are under dispute or fall within international waterways pose potential conflicts between the Bank and its member countries and between the Borrower and its neighbors. To avoid problems, a full assessment of the issues involved should be undertaken at the earliest possible stage of project processing.

For more information on the Bank's operational policies concerning indigenous peoples, involuntary resettlement, disputed or international waterways, please click here.  For training opportunities on these policies, click here.

Back to the top | Go to home page